The Pakistani government is considering levying taxes on both residential and commercial users of solar panels. This move has sparked controversy as the government previously encouraged solar energy adoption to reduce reliance on oil-based energy sources.

Individuals and businesses independently installed solar panels, but the proposed tax could deter further adoption.

Recently, reports emerged that the Central Power Purchasing Agency (CPPA) suggested imposing taxes on such users. The federal government has yet to decide on this matter.

Which solar panel users will face a new tax?

According to the proposal, the tax will apply to users who have installed solar panel systems with a capacity of 12 kilowatts or more.

Proposed Per-Kilowatt Tax on Solar Panel Systems

The agency has requested the government collect a tax of Rs 2,000 per kilowatt from individuals who have installed solar setups with a capacity of 12 kilowatts or higher.

Proposed Total Tax on a 12-Kilowatt Solar Panel Setup

If the federal government approves the proposal, the 12-kilowatt panels would pay Rs. 24,000 in tax.

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